Total Quality Management

What is Quality ?
• Fred Smith says “ Performance to the standard
expected by the customer”

• “ meeting the customer need first time and every

time”

• DOD “Doing the right thing right the first time ,

always striving for improvement and always
satisfying the customer”
 How do measure the quality?

• Restaurant
• Product
• Television
• PC
• Automobile
 We can say….
• Quality involves meeting or exceeding
customer expectation
• Quality applies to products , services,
people, processes and environment
• Quality is an ever-changing state ( What is
considered quality today may not be good
enough to be considered quality tomorrow.
 What is Total Quality ?
• Total quality is an approach to doing
business that attempts to maximize the
competitiveness of an organization through
the continual improvement of the quality of
its products, services, people,processes and
environment.
 Characteristics of TQ
• Strategically based
• Customer focus
• Obsession with quality
• Scientific approach to decision making and
problem solving
• Long term commitment
• Team work
• Continual process improvement
• Education and training
• Freedom through control
• Unity of purpose
• Employee involvement and empowerment
 Customer Focus

People Process
Measures
• Quality is built •Continual
•SPC in improvement
•Bench Marking •Quality is •Good enough is
•Quality Tools expected not
never enough
inspected
• Employee
empowerment
 Difference between traditional view of
quality and TQM
Traditional Quality View Total quality
Productivity & Quality in conflict Productivity gains are made only as
a result of quality.

Meeting customer specifications Satisfying customer need &

exceeding expectation

Measured by establishing an Measured by establishing high-

acceptable level of nonconformance performance benchmark for
& measuring that benchmark customer satisfaction & continual
improving performance
Quality is inspected into the Quality is determined/expected by
product product design and achieved by
effective control techniques.
Traditional Quality View
Defects are an expected parts of
producing a product. Measuring
defects per 100 is an acceptable
standard.
Quality is a separate function.
Employees are blamed for quality
Supplier relationship are short term Supplier relationship are long term
and cost driven
Total quality
Defects are to be prevented using
effective control systems and
should be measured in defects per
million.
Fully integrated through out the
organization.
80 percent quality problems are
management fault.
and quality oriented
 Deming Cycle
1
Plan

5 2
Analyze Do

Deming cycle

4 3
Act Check
 Deming’s 14 points
1. Create constancy of purpose toward improvement of product
and service, with the aim to become competitive and to stay
in business, and to provide jobs.
2. Adopt the new philosophy.Management must awaken to the
challenge, must learn their responsibilities, and take on
leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate
the need for inspection on a mass basis by building quality
into the product in the first place.
4. End the practice of awarding business on the basis of price
tag. Instead, minimise total cost. Move towards a single
supplier for any one item, on a long-term relationship of
loyalty and trust.
5. Improve constantly and forever the system of production and
service, to improve quality and productivity, and thus
constantly decrease costs
 Cont..
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help
people and machines and gadgets to do a better job. Supervision of
management is in need of an overhaul, as well as supervision of
production workers.
8. Drive out fear, so that everyone may work effectively for the
company.
9. Break down barriers between departments. People in research,
design, sales, and production must work as a team, to foresee
problems of production and in use that may be encountered with
the product or service.
10. Eliminate slogans, exhortations, and targets for the workforce
asking for zero defects and new levels of productivity. Such
exhortations only create adversarial relationships, as the bulk of
the causes of low quality and low productivity belong to the
system and thus lie beyond the power of the work force.
 Cont..
11. Eliminate work standards (quotas) on the factory floor.
Substitute leadership.. Eliminate management by numbers,
numerical goals.
12. a. Remove barriers that rob the hourly paid worker of his right
to pride in workmanship. The responsibility of supervisors
must be changed from sheer numbers to quality.
b. Remove barriers that rob people in management and
engineering of their right to pride in workmanship.
13. Institute a vigorous program of education and self-
improvement.
14. Put everybody in the company to work to accomplish the
transformation. The transformation is everybody's job.
 Juran Trilogy
Dr. Juran’s trilogy defined the three management processes
required by every organization to improve: Quality control,
quality improvement and quality planning.
This Trilogy shows how an organization can improve every aspect
by better understanding of the relationship between processes
that plan, control and improve quality as well as business
results. It was created in the 1950’s and defines managing for
quality as three basic quality-oriented, interrelated processes:
• Quality Planning
• Quality Control
• Quality improvement
Quality Planning --- To determine customer needs and
develop processes and products required to meet and
exceed those of the customer needs. The processes are
called Design for Six Sigma or Concurrent Engineering.
This can be particularly challenging for a planning team,
because customers are not always consistent with what
they say they want. The challenge for quality planning is to
identify the most important needs from all the needs
expressed by the customer.
• Identify who are the customers.
• Determine the needs of those customers.
• Translate those needs into our language.
• Develop a product that can respond to those needs.
• Optimize the product features so as to meet our needs and
customer needs
Quality Control --- The purposes of quality control is to ensure the
process is running in optimal effectiveness, or to ensure that any
level of chronic waste inherent in the process does not get worst.
Chronic waste, which is a cost of poor quality that can exist in any
process, may exist due to various factors including deficiencies in
the original planning. It could cost a lot of money to the company,
from rework time to scrap product to overdue receivables. If the
waste does get worst (sporadic spike), a corrective action team is
brought in to determine the cause or causes of this abnormal
variation. Once the cause or causes had been determined and
corrected, the process again falls into the zone defined by the
“quality control” limits.
• Prove that the process can produce the product under operating
conditions with minimal inspection.
• Transfer the process to Operations.
Quality Improvement --- Eliminate waste, defects and rework
that improves processes and reduces the cost of poor
quality. The processes have to be constantly challenged
and continuously improved. Such an improvement does
not happen of its own accord. It results from purposeful
Quality Improvement or “Breakthrough.”
• Develop a process which is able to produce the product.
• Identify specific area in need of improvement, and
implement improvement project
• Establish a project team with responsibility for completing
each improvement project
• Provide team with what they need to be able to diagnose
problems to determine root cause, develop solutions, and
establish controls that will maintain gains made.
 SIX SIGMA
• Six Sigma concept introduced by Motorola in mid 1980’s.
• The purpose is to improve the performance of processes to the
point where the defect rate is 3.4 per million or less.
• The name of six sigma comes from the concept of standard
deviation, a statistically derived value represented by the lower
case Greek letter Sigma.
• The variation of processes and their output products is typically
measured in the number of standard deviations from the mean.
Sigma Non- % Non- %
Levels conformance Acceptable conformance Acceptable
Statistical Statistical Motorola Motorola
1 317,400 68.26 697,700 30.23

2 45,400 95.46 308,733 69.1267

3 2,700 99.73 66,803 93.3197

4 63 99.9937 6,200 99.38

5 0.57 99.999943 233 99.9767

6 0.002 99.9999998 3.4 99.99966

7 0.000003 ~ 100 0.019 99.9999981

 TOOLS OF TQM

 Check sheets

 Scatter Diagrams

 Cause-and-Effect Diagram
 Pareto Charts

 Flow Charts

 Histograms

 Statistical Process Control (SPC)

 Check list
• Check list is used for those activities which
are repeated on the daily basis. By the help
of check list we make sure that any of these
activity or report is not missed on regular
basis.
 Check List for Retail Store
1. Daily sales report
2. Attendance report
3. Stock report
4. Requisition report
5. Cash report
6. Display checks
7. Bank deposit reports
 Pareto Analysis
• A method of depicting problems in a store
in frequency in the decreasing order.
• It helps to identify major and minor
problems of a store.
Pareto Analysis
 Process Chart

SUBJECT: Request tool purchase

Dist (ft) Time (min) Symbol Description
 D  Write order
 D  On desk
75   D  To buyer
 D  Examine
 = Operation;  = Transport;  = Inspect;
D = Delay;  = Storage
 Cause and Effect Diagram
• Used to find problem sources/solutions
• Other names
– Fish-bone diagram, Ishikawa diagram
• Steps
– Identify problem to correct
– Draw main causes for problem as ‘bones’
– Ask ‘What could have caused problems in
these areas?’ Repeat for each sub-area.
 Merchandise Manpower
return
Poor Quality High turn over

Poor Absenteeism
assortment
Low Sales
Poor forecast Poor product
knowledge
Late deliveries Lack of training

Out of stock Service complaint

 Scatter Diagram
• Scatter diagram shows the relationship of
one variable to the other.
 Scatter diagram
Productivity mesaures

35
30
absenteeism

25
20
Absenteeism
15
10
5
0
0 20 40 60 80 100 120
productivity
 Statistical Process Control
(SPC)
• Uses statistics & control charts to tell
when to adjust process
• Developed by Shewhart in 1920’s
• Involves
– Creating standards (upper & lower limits)
– Measuring sample output (e.g. mean wgt.)
– Taking corrective action (if necessary)
• Done while product is being produced
 Inspection Points in Services

Organization What is
Inspected Standard

Department Display areas Attractive, well-

Store organized, stocked, good
lighting
Stockrooms Rotation of goods,
organized, clean
Salesclerks Neat, courteous, very
knowledgeable
 Inspection point

Retail store Clean, uncluttered, organized,

Stockrooms
level of stockouts, amply supply,
rotation of goods

Display areas Attractive, well-organized, stocked,

visible goods, good lighting

Neat, courteous knowledgeable

Sales counters personnel; waiting time; accuracy
in credit checking and sales entry